January Budget Proposal – CSAC Mentions Roundup
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The Governor’s January Budget Proposal fails to account for the impact of H.R. 1 on counties. While the full scope of federal cost shifts is still coming into focus, one thing is clear: counties are being asked to absorb new burdens in an already strained fiscal climate.
Counties are the frontline providers of critical services that communities rely on every day. From healthcare and hospitals to food support and public safety, these services are under threat with federal funding cuts and insufficient proposed funding in the State budget.
CSAC remains committed to protecting these essential services and elevating the county voice in the budget conversation. That commitment is reflected in our media engagement. We will continue to engage in the budget and legislative process to ensure the county voice is heard.
Below is a roundup of media coverage highlighting CSAC’s response to the Governor’s January Budget Proposal and State of the State Address. This list will be updated as additional coverage is published.
CalMatters – Homelessness crisis remains one of Newsom’s biggest political liabilities
January 15, 2026
County officials took umbrage. The California State Association of Counties, in a statement, complained that Newsom’s budget shifts the financial burden for several health and welfare programs to county governments and fails to protect them from federal reductions.
The organization also cited the new budget’s omission of an annual bloc grant for homeless programs, and the administration’s stalling the delivery of cash from a past allocation, “which was approved by the Legislature 18 months ago.”
California County News – Newsom’s Budget Boosts Education, Slashes Housing and Homelessness Funding
January 14, 2026
City and county leaders expressed serious concerns with Newsom’s plan.
“This budget proposal does not in any way acknowledge the impact of H.R. 1 on counties and our local communities,” California State Association of Counties (CSAC) CEO Graham Knaus said in a statement, referring to the so-called “One Big Beautiful Bill Act” which was signed into law in July. “If the state doesn’t step up, communities across California will crumble.”
Capital Public Radio – California’s budget outlook spells trouble for Sacramento’s city and county
January 12, 2026
Graham Knaus, CEO of California Association of Counties, or CSAC, told CapRadio the January state budget does not adequately meet the moment.
“If the state does not step up, counties will certainly crumble,” Knaus said following the presentation.
- Ways to listen:
- Web – 12:30pm and 7:30pm Broadcast
- Apple Podcasts – starts around 28min mark
Sacramento Bee – Legislative analyst raises ‘serious concerns’ about California’s fiscal path
January 12, 2026
Advocacy groups and the various associations of government service providers who lobby the Legislature are likely to press lawmakers not to make reductions at the same time as the federal government. Last week, Graham Knaus, the chief executive of the California State Association of Counties, criticized Newsom’s budget for not responding to the cost burdens shifting to local governments.
“This budget proposal does not in any way acknowledge the impact of (One Big Beautiful Bill Act) on counties and our local communities,” he said in a statement. “If the state doesn’t step up, communities across California will crumble.”
Los Angeles Times – Immigrant healthcare takes a hit under Newsom’s nearly $349-billion budget proposal
January 10, 2026
While California currently offers state-funded, full-scope Medi-Cal to undocumented immigrants, other immigrants — including refugees and asylees — would be restricted to a program that covers emergencies and pregnancy care only.
“If the state doesn’t step up, communities across California will crumble,” California State Assn. of Counties chief executive Graham Knaus told The Times in a statement.
Contra Costa News – CSAC Statement on 2026 State of the State Address
January 10, 2026
“Let’s be clear: Playing a shell game with existing funds is no substitute for the most successful program addressing homelessness at the local level. The governor rightly praises counties and cities for reducing homelessness. So why on earth would the state abdicate its responsibility and allow homelessness to soar again?”
Reprint of CSAC statement.
Voice of San Diego – Sacramento Report: Newsom Tells Counties ‘No More’ On Homelessness Funding
January 9, 2026
Graham Knaus, CEO of the California State Association of Counties, said after Friday’s proposal that he hopes funding is restored to the full $1 billion as negotiations continue.
Sacramento Bee – Gov. Gavin Newsom unveils $348.9 billion budget, with $2.9 billion deficit
January 9, 2026
Graham Knaus, the chief executive of the California State Association of Counties, slammed the budget for not including more specifics about the cost burden to local governments.
“This budget proposal does not in any way acknowledge the impact of H.R. 1 on counties and our local communities,” he said in a statement. “If the state doesn’t step up, communities across California will crumble.”
CalMatters – Gavin Newsom forecasts a rosier California budget and banks on AI boom continuing
January 9, 2026
The California State Association of Counties is hoping those conversations will lead to an increase in homelessness funding before the budget becomes final.
“We know it works,” Knaus said during a media briefing. “We know it has led to a significant reduction in homelessness in communities across California. And without those resources, that success that we have had is going to go away.”
Los Angeles Times – AI windfall helps California narrow projected $3-billion budget deficit
January 9, 2026
Newsom’s proposed budget did not include funding to backfill the massive cuts to Medicaid and other public assistance programs by President Trump and the Republican-led Congress, changes expected to lead to millions of low-income Californians losing healthcare coverage and other benefits.
“If the state doesn’t step up, communities across California will crumble,” California State Assn. of Counties CEO Graham Knaus said in a statement.
AP News – Newsom faces another multibillion-dollar budget shortfall in his last year as California governor
January 9, 2026
County officials worry the lack of new funding will hurt efforts to reduce homelessness. The programs are working, California State Association of Counties CEO Graham Knaus said, pointing to a 9% drop in unsheltered homelessness that Newsom touted earlier this week.
“It would make no sense to then stop the most successful program that is doing that,” he said Friday.
- Reprinted in:
San Francisco Chronicle – California faces $3 billion deficit in Gov. Gavin Newsom’s final state budget plan
January 9, 2026
Graham Knaus, who leads the California State Association of Counties, has warned that the effects of the big federal budget bill passed last year known as HR1 could be catastrophic to counties, which are responsible for providing safety net services to low-income people. He criticized the governor’s budget plan for not allocating more money to counties to backfill the federal cuts.
“This budget proposal does not in any way acknowledge the impact of HR1 on counties and our local communities,” Knaus wrote in a statement. “If the state doesn’t step up, communities across California will crumble.”